If you’re earning through any profession, business, or employment in Bihar, you are required to register and pay professional tax under the Bihar Professional Tax Act. This mandatory state-level tax applies to employers, salaried individuals, freelancers, consultants, and business owners operating within the state.
This page covers everything you need to know, from eligibility and tax slabs to required documents, online payment process, and exemptions.
What is Professional Tax in Bihar?
Professional Tax is a direct tax levied by the Bihar state government on income earned through salaries, professions, or trades. The tax is collected by the Bihar State Municipal Corporation and is governed by the Bihar Professional Tax Rules, 2011. It’s applicable to both salaried employees and self-employed individuals.
The Bihar government collects this tax to fund state-level welfare and development initiatives. While employers must deduct it from employee salaries and file monthly returns, self-employed individuals are required to pay it annually.
Who Must Register for Professional Tax in Bihar?
Under the Bihar Professional Tax regulations, the following categories are liable to register and pay:
- Salaried Employees: Employees working in private organisations are subject to professional tax deductions. The employer is responsible for deducting the tax from their monthly salaries and remitting it to the state government.
- Employers / Business Owners: Every employer with salaried staff in Bihar must:
- Obtain professional tax registration
- Deduct tax from employee salaries based on applicable slabs
- File monthly returns and remit payments to the Commercial Taxes Department
- Self-Employed Individuals: These individuals must self-enrol and pay tax annually if their income exceeds the exemption limit. This category includes:-
- Freelancers
- Independent professionals such as doctors, consultants, CAs, architects, and lawyers
- Registered Companies and Firms: Entities such as Private Limited Companies, LLPs and Partnerships, and Proprietorships with business operations in Bihar must register and ensure compliance for themselves and their staff.
- Transporters, Traders, and Other Professionals
Including Permit holders (e.g., vehicle operators), Small traders, shop owners, Contractors, and individuals involved in trade or commerce activities must pay professional tax based on turnover or annual income.
Documents Required for Professional Tax Registration in Bihar
Here’s a breakdown of all the required documents needed for Professional Tax Registration in Bihar
For Employers:
- PAN of the business
- GST Registration Certificate
- Address proof of the business
- Employee salary details
- ID and address proof of the authorised signatory
For Self-Employed Professionals:
- PAN and Aadhaar card
- Proof of profession (certificate, license, etc.)
- Address proof
- Bank details (optional)
Professional Tax Slab in Bihar
Here is a structured breakdown of the professional tax slab rates in Bihar based on income, turnover, and type of profession as per the Bihar Professional Tax Rules:
| S. No. | Class of Tax Assessees | Income/Turnover/Description | Amount of Tax Payable (per annum) |
| 1 | Individuals (Salary/Professionals/Self-employed) | Income up to ₹3,00,000 | Nil |
| Income > ₹3,00,000 and ≤ ₹5,00,000 | ₹1,000 | ||
| Income > ₹5,00,000 and ≤ ₹10,00,000 | ₹2,000 | ||
| Income > ₹10,00,000 | ₹2,500 | ||
| 2 | Dealers registered under Bihar VAT Act, 2005 or Central Sales Tax Act, 1956 | Turnover up to ₹10,00,000 | Nil |
| Turnover > ₹10,00,000 and ≤ ₹20,00,000 | ₹1,000 | ||
| Turnover > ₹20,00,000 and ≤ ₹40,00,000 | ₹2,000 | ||
| Turnover > ₹40,00,000 | ₹2,500 | ||
| 3 | Holders of Permits for Transport Vehicles (Motor Vehicles Act, 1988) | For each taxi/passenger car | ₹1,000 |
| For each truck or bus | ₹1,500 | ||
| Maximum tax per permit holder | ₹2,500 | ||
| 4 | Cable operators, film distributors, cinema/theatre owners,marriage or commercial hall owners, | Each entity | ₹2,500 |
| Residential hotel owners, health centre owners, coaching class operators, petrol/diesel/oil pump owners, | |||
| Service station owners, licensed foreign liquor vendors, brick kiln owners, banking companies, companies | |||
| Registered under the Companies Act, 1956, engaged in profession/trade/calling |
Step-by-Step Registration Process
Here is a simple breakdown of the steps to complete your Professional Tax Registration in Bihar efficiently and hassle-free.
- Step 1: Visit the Official Portal
Go to the official website of the Bihar Commercial Taxes Department:
https://www.biharcommercialtax.gov.in
- Step 2: e-Registration
From the homepage, click on ‘e-Registration’ and choose the appropriate type of taxpayer (e.g., employer or self-employed) to complete your registration.
- Step 3: Access e-Services
Once registered, return to the homepage and go to ‘e-Services’.
- Step 4: Select e-Payment
Under e-services, click on ‘e-Payment’ to begin the tax payment process.
- Step 5: Log In
Enter your Login ID, Password, and the CAPTCHA code to log in.
- Step 6: Navigate to e-Payments
After logging in, find and click the ‘e-Payments’ option on the sidebar menu.
- Step 7: Choose Professional Tax Payment
Select ‘Professional Tax Payment’ from the available payment types.
- Step 8: Fill in the Payment Form
You will be redirected to a payment form. Carefully enter all required details. If needed, you may edit the fields before proceeding.
- Step 9: Select Payment Details
Choose the appropriate payment type, financial year, tax period, and payment method (net banking, credit/debit card, etc.).
- Step 10: Enter Tax Amount
Input the tax amount payable, select the correct account ID, and verify all payment details.
- Step 12: Download the Receipt
Upon successful payment, a digital receipt will be generated. You can download or print the receipt for your records.
Key Forms under Bihar’s Professional Tax
| Form No. | Purpose/Description |
| Form PT I | Application for Registration by Employer |
| Form PT II | Registration Certificate to the Employer |
| Form PT IA | Application for Enrollment by Persons Engaged in Profession, Trade, or Calling |
| Form PT IIA | Registration Certificate of Enrollment |
| Form PT IV | Statement of Tax Deductions by Employer |
| Form PT V | Statement of Tax Deductions by Employer in Case of Increased Salary |
| Form PT VI | Certificate of Tax Deduction to Employee |
| Form PT VIII | Annual Return of Tax Deductions by Employer |
| Form PT IX | Annual Return by Enrolled Person |
| Form PT X | Form for Challan Payment |
Exemptions from Professional Tax in Bihar
- Individuals with annual income up to ₹3,00,000
- Senior citizens aged 65 years and above
- Persons with permanent physical or mental disability (typically 40% or more, as certified by a competent authority)
- Parents or guardians of children with permanent disabilities
- Members of the Armed Forces of the Union
Penalties for Non-Compliance
| Type of Violation | Applicable Penalty |
| Delay in Registration | A penalty up to ₹500 may be imposed for not completing registration on time. |
| Late Payment of Tax | A fine of ₹100 per month is charged for each month of delayed payment. |
| Failure to File Returns | A penalty up to ₹500 can be levied for not submitting the required returns. |
| Ongoing Non-Compliance | An additional penalty of up to ₹10 per day may apply for continued default. |
| Interest on Overdue Amount | Interest at the rate of 2% per month may be charged on unpaid tax, as decided by the authorities. |
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Frequently Asked Questions (FAQ’s)
1. Is professional tax registration mandatory for all businesses in Bihar?
Yes, every business, regardless of size, that employs persons are liable to pay professional tax, must obtain registration under the Bihar Professional Tax Act.
2. Do freelancers and self-employed professionals have to pay professional tax in Bihar?
Yes, freelancers and self-employed individuals are required to pay professional tax if their annual income exceeds the exemption threshold.
3. Which authority collects professional tax in Bihar?
The Commercial Taxes Department, Government of Bihar, is responsible for collecting professional tax in the state.
4. Are pensioners required to pay professional tax in Bihar?
Pensioners are generally exempt from professional tax unless they are engaged in any other taxable profession or employment.
5. What is the due date for professional tax payment in Bihar?
The due date for annual professional tax payment in Bihar is 15th November every year for all registered individuals and entities
6. What happens if I fail to pay or register for professional tax on time?
Penalties include a fine for late registration, late payment, or failure to file returns, and interest on outstanding amounts as determined by the authorities.
7. How can I update my professional tax registration details?
To update your PTIN details (like address or nature of business), log in to the Commercial Tax portal, submit a modification request under your profile, and upload the supporting documents.
Conclusion
Staying compliant with Professional Tax in Bihar is a vital part of running a transparent and responsible business. Whether you’re a salaried professional, freelancer, or employer, timely registration, accurate filing, and proper payment help you avoid penalties and ensure smooth business operations.
At InstaFiling, we simplify the entire process from PTIN registration to online payments and return filing. With expert assistance, dedicated support, and a fully digital experience, we help you meet your compliance goals without stress.
